The gambling sector has expressed significant frustration following Prime Minister Andy Burnham's comments in which he categorized betting shops as comparable to vape shops and questionable operators in his assessment of the declining high streets in Britain.
Burnham's government plans to eliminate the "aim to permit" principle from the Gambling Act 2005. This change will empower local authorities with increased authority to deny applications for new gambling establishments, including requiring planning permission for new adult gaming centers.
However, the language used in the announcement has drawn particular ire. Burnham asserted that betting and vape shops have replaced the desired shops and community spaces, framing the policy as a move to control "dodgy businesses."
For the bookmakers, this narrative raises immediate concerns. They argue that the portrayal of their businesses bears little resemblance to the reality. Currently, the number of betting shops in Britain is under 5,900, a decline from nearly 9,000 in 2015, indicating that the retail sector has been reducing for over a decade rather than expanding unchecked.
Greg Knight, chief executive of JenningsBet, called the comparison to dodgy businesses offensive, highlighting that these establishments provide jobs for 40,000 individuals, support the British horseracing industry, and contribute billions in taxes. He also shared that JenningsBet has opened four new shops but closed three, resulting in a net gain of just one location, much of the growth attributed to acquisitions.
Knight warned that if councils are granted more discretion, new openings could cease altogether, especially as applications have already noticeably decreased. He expressed concern that politicians may be mistakenly blurring the lines between betting shops and adult gaming centers (AGCs), which, while grouped together in government discussions, represent different types of businesses.
The AGC sector also disputes the government's narrative. Alistair Gair, communications director for Bacta, noted that the number of AGCs dropped from 1,610 in 2015 to 1,502 last year, emphasizing that this sector is in decline rather than taking over the high streets. Gair highlighted that AGCs occupy spaces that may otherwise remain vacant, providing jobs and regulated entertainment in safe, alcohol-free environments. He cautioned that limiting licensed premises might drive customers toward illegal operations lacking such protections.
The reality of declining high streets may not be remedied by restricting commercial units, as councils can only select among businesses that can afford to operate in these spaces. Christopher Snowdon from the Institute of Economic Affairs contended that Burnham misidentified the causes of high-street decline, arguing that while betting and gaming businesses have become more visible due to falling demand and rents, they have not displaced a robust retail economy.
According to Snowdon, the structural transformation of high streets is largely responsible for the changes observed. He pointed out that increased online shopping and the prevalence of supermarkets have led to diminished demand for traditional retailers like banks and bookshops. The remaining businesses on high streets are likely to focus on services that require in-person patronage, shifting surplus spaces towards residential use.
Restricting legitimate gambling operators will not reverse this trend, he added, and enacting new laws targeting illicit activity in specific businesses could replace effective law enforcement.
Rank’s chief executive, Richard Harris, defended the industry's societal value during a recent earnings call, describing venues as "community assets" that provide safe entertainment and gambling oversight. He reassured analysts of the industry's commitment to customer care and quality entertainment.
Industry leaders are being urged to take a more proactive stance. Patrick Jay, a former William Hill executive and now a consultant, argued that the sector has not effectively countered opposition narratives. He suggested that the industry has struggled with leadership and has been consistently outmaneuvered, lacking a rapid-response team to address health-focused criticisms.
Jay emphasized the necessity for the sector to demonstrate its local value consistently, not just when threatened. The challenges now awaiting Vicki Foxcroft, the newly appointed gambling minister, emphasize an industry feeling misunderstood amid a prime minister who has already set a definite tone for the discussion, as well as complex legislative issues to navigate.
The task before Foxcroft is unlikely to be an easy one, as reflected in the old adage about a traveler asking for directions in Ireland: "If I were you, I wouldn’t start from here."
